In this paper, we study the licensing of cost-reducing innovations in a duopoly under supply function competition. We show that innovator prefers fixed-fee to no if its cost advantage is not extremely large. Moreover, small, and mixed revenue-royalty licensing. This second result arises only because our assumption functions are quadratic. linear royalty payments per unit output, strictly also m...

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In the midst of the huddle one figure stands out. He is an Aboriginal man dressed in an old suit, dogs at his side ... A report from the Canberra Times referred to him as ‘a lone representative of a fast vanishing race’ who had come only to salute ‘visiting Royalty’. His name was Jimmy Clements. Whitefellas, as was their way, referred to him as ‘King Billy’. On seeing Clements, a policeman imme...

In this paper, we characterize situations where licensing an innovation to a rival ...rm using two-part tari¤ contracts (a ...xed fee plus a linear per unit of output royalty) reduces social welfare. We show that it occurs if and only if i) the goods are close enough substitutes, ii) the innovation is large enough but not drastic and iii) the ...rms compete in prices. Moreover, we show that, re...

The 1993 production sharing contract (PSC) in Nigeria specifies different royalty rates for oil and gas investment. were fixed. This makes the fiscal arrangement to be regressive nature. Royalty rate of 20% is paid onshore investment using PSC. Hence, there a need make progressive. delayed framework was incorporated into the1993 PSC as progressive measure it dynamic. Two economic models develop...

We investigate how liability rules and property rules protect intellectual property. Infringement might not be deterred under any of the enforcement regimes available. However, counterintuitively, a credible threat of infringement can actually benefit the patentholder. We compare the two doctrines of damages, lost profit (lost royalty) and unjust enrichment, and argue that unjust enrichment pro...

This article shows how the principles of modern bargaining theory can help develop a better understanding of contractual terms such as royalties between copyright holders and users such as between an artist and a recording company (or between an author and a publisher). We develop the main principles in a non-technical and illustrative manner.